Shares of memory chip manufacturer (NASDAQ: MU) have surged over the past year as a brutal industrywide downturn came to an end. Demand for the high-speed memory used in AI accelerators is soaring, the PC market has bottomed out and returned to growth, and memory chip prices are recovering.

Micron's earnings report for the third quarter of fiscal 2024 beat expectations, but the stock sank as investors digested an outlook that was in line with analyst estimates. With shares of Micron dipping from their recent high, is it time to buy the hot AI stock?

The immediate impact of the AI revolution for Micron is increased demand for high-bandwidth memory (HBM), a type of memory chip that's commonly used in AI accelerators. While it was a bit late to the HBM party, the company is now ramping up production.

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Source Fool.com